The Biotech Growth Trust - Performance setback may provide an opportunity

The Biotech Growth Trust (BIOG) is managed by Geoff Hsu of OrbiMed Capital, which is a specialist healthcare investor with 11 offices across the globe including in Hong Kong and Shanghai. The manager remains very positive on the outlook for the biotech sector primarily due to the current elevated level of industry innovation that he refers to as a ‘golden era’; the number of late-stage pipeline products increased by 50% between 2015 and 2020. He also believes that biotech stocks will be supported by ongoing merger and acquisition (M&A) activity, levels of which have remained robust despite the pandemic as there is high demand from larger-cap healthcare companies seeking to boost their pipelines.